The stock sales are a change in Orkla’s plans, which was considering an IPO for its Indian business in September 2024. The Norwegian company entered India in 2007 with acquiring the ready-to-eat food maker MTR and in 2020 with acquiring Spicemaker Eastern.
“ITC is ready to evaluate the acquisition as it is keen on some of the major southern markets in the food space. The company will increase its overall revenue spice and edible contribution for a while. “We’re planning on doing that,” said the person.
IPO vs. private sale
Certainly, Orkla has not removed the IPO plan. If the company is not getting good reviews on private sales, Orkla continues to carry out an IPO in India, the people mentioned above state anonymously.
Also Read | ITC Foods is targeting growth in northern India and West India as it moves to branded products
A spokesman for Oslo-based Orkla responded to the Mint Query, saying that he “has not commented on unfounded market rumors or speculations.” The email sent to ITC on Monday remained unanswered. ITC Chairman and Managing Director Sanjiv Puri did not respond to emails and text messages.
Okura is thinking about whether a majority of share sales can get a better valuation than an IPO through private transactions, one of the two said.
Indian spices and ready-to-eat market
For ITC, which recently acquired FMCG brand Prasuma, people said the acquisition is in line with a strategy to grow faster in the new region.
MTR Foods and Eastern lead the market for ready-to-cook foods and spices from Andhra Pradesh, Karnataka, Tamil Nadu and Kerala.
After the launch of the MTR brand in the food space by the Bengaluru-based Maya family in 1950, MTR Foods experienced several diversifications. He then became a top player with South Indian spices and quick cook spaces. MTR and East are two major businesses in Orkla India. In 2024, Orkla India earned more than 80% of its revenues £2,400 crores from MTR Foods and Eastern.
MTR Foods sells several products in North America, West Asia, Japan, and several Southeast Asian countries. MTR’s South Indian products are an important category in many international markets.
Also Read | Rural Consumption Drops out the City: How FMCG Giants Adapt Strategies
If a transaction occurs, ITC, which is primarily leading in eastern and northern states, could become market leaders for some food spaces in the southern states.
According to research firm IMARC Group, India’s spice market size was worth it £It is expected to touch 2,643.7 crores in 2024. £By 2033 it had a CAGR of 5,13,253.9 crore, with a CAGR of 10.56% over the period.
MTR Foods and Eastern Condiments won three-quarters of sales from the Southern Province in 2024. But as more brands and unorganized players come in, competition is increasing in spices and quick cooking spaces.
Read again | Spice down, sweets. An immediate meal in India is how to attack the western palate
In an interview with the Economic Times on April 7, 2024, Okura Foods Europe CEO Atrevider Nagel Johansen said, “In India, the route to consumers is used to it. More complex than things: European markets.
A competitive landscape
Eastern and North Indian spices and ready-to-cook markets are dominated by MDH, Everest and some of ITC-owned brands. All of India’s organized spice market, Everest and MDH are top players.
Competition has intensified over the past five years. Three years ago, Dabur India bought a 51% stake in Badshah Masala £588 Kroul, ITC acquired spice maker Sunrise Food in full-fast deals that it cherishes at £About four years ago, it was 2,150 crores.
Due to its edible expansion, the ITC is being scouted for opportunities.
On February 6th, ITC announced its acquisition of Prasuma. Prasuma is an expert in oriental cuisine (such as thighs, bau, and Korean fried chicken) and also sells delicatessen and raw meat. The acquisition will be completed by June 2028.
Read Also | Frozen Food Feast: ITC bites Momo-Maker Prasuma
If the latest talks to win MTR and Eastern are given, the ITC will have the upper hand over Everest and MDH in some states, particularly the South.
